list of units

PRDRE 28A Maintain trust account - Unit descriptor

This unit expands on units relating to bookkeeping and financial management to clarify the distinction between audits of accounts kept for normal agency business practices and audits for trust account management purposes.

Element

Performance criteria
  1. Establish trust account record-keeping systems.
1.1 Trust account requirements are clearly produced to provide an accurate and separate record of funds managed in trust for audit purposes.
1.2 Documentation required for accurate trust account keeping is produced to comply with key accounting principles.
1.3 Books of accounts are maintained to provide an accurate record of agency transactions on behalf of clients within a given period.
1.4 Audit and security arrangements are maintained to prevent fraud and provide adequate protection for client funds held in trust.
  1. Secure cash disbursements.
2.1 Functions and responsibilities are kept separate to reflect agency responsibilities for cash disbursement security.
2.2 Security systems in cash management are implemented to minimise the risk of loss through negligence or fraud.
2.3 Disbursements to and from trust accounts are authorised and managed within agreed agency protocols.
  1. Establish, supervise and control staff activities in relation to trust account transactions.
3.1 Lines of authority are clearly explained to staff and monitored on a day-to-day basis.
3.2 Privacy of agency transactions on behalf of clients is protected through authorised access controls.
3.3 Entries to trust accounts are checked against authorisation records to ensure compliance with agency and statutory requirements.
3.4 Discrepancies in trust account records are checked and, when necessary, reported to the licensee.
  1. Maintain records of trust account transactions.
4.1 Records are maintained to enable them to be conveniently and properly audited.
4.2 Periodic financial reports are prepared and discussed with clients to ensure their continued accuracy.
4.3 Corrective action to remedy confirmed discrepancies is performed when relevant.
4.4 Security risks for safekeeping of records and funds on agency premises are identified and remedial action taken.